Its only been about 5 years since we had great panic in the market regarding Y2K . You might recall that many computer systems were not programmed to be able to understand from 1999 to 2000 the change. There was a huge amount of panic created by those who were convinced that the clock hit midnight on New Year's Eve in 2000 that we were going to enter the Middle Ages .
Through my analysis, this never happened .... unless I slept through it and no one bothered to wake me up ! ( Note to self : Make Staff me up when Y2K happens! )
The word that we are supposed to learn and understand ; TEOTWAWKI .... ( The End Of The World As We Know It ) It was a word created by the Y2K scare .
I think there is a very profound lesson from the Y2K scare to be learned . Namely that forecasting is virtually worthless . The real problem with the trade as with life itself is to manage risks. Risk can be defined many ways , but usually it is not prepared for the future and embracing an opinion .
One advantage of living in a free society is that we are fortunate enough to be exposed to numerous positions on a daily basis . As traders we must learn to continually distinguish the difference between facts and opinions and determine how new data may affect us.
For those who never learn to do , the end of the world as we know this will be reflected in their portfolios . For the rest of us all we can do is learn to manage risks. It is the only trade secret.
There are two schools of thought on the market .... TEOTWAWKI and Risk Management . You make the choice.
The only constant in life is change. Not predict . Manage your RISK.
Dowjonesfully ,
- Harald Anderson
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become .
Its only been about 5 years since we had great panic in the market regarding Y2K . You might recall that many computer systems were not programmed to be able to understand from 1999 to 2000 the change. There was a huge amount of panic created by those who were convinced that the clock hit midnight on New Year's Eve in 2000 that we were going to enter the Middle Ages .
Through my analysis, this never happened .... unless I slept through it and no one bothered to wake me up ! ( Note to self : Make Staff me up when Y2K happens! )
The word that we are supposed to learn and understand ; TEOTWAWKI .... ( The End Of The World As We Know It ) It was a word created by the Y2K scare .
I think there is a very profound lesson from the Y2K scare to be learned . Namely that forecasting is virtually worthless . The real problem with the trade as with life itself is to manage risks. Risk can be defined many ways , but usually it is not prepared for the future and embracing an opinion .
One advantage of living in a free society is that we are fortunate enough to be exposed to numerous positions on a daily basis . As traders we must learn to continually distinguish the difference between facts and opinions and determine how new data may affect us.
For those who never learn to do , the end of the world as we know this will be reflected in their portfolios . For the rest of us all we can do is learn to manage risks. It is the only trade secret.
There are two schools of thought on the market .... TEOTWAWKI and Risk Management . You make the choice.
The only constant in life is change. Not predict . Manage your RISK.
Dowjonesfully ,
- Harald Anderson
Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies . His goal in life is to become the kind of person that his dog already thinks he has become .
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